IN PURSUIT
The Official
Communication of
The Wisconsin State
Crime Stoppers
Wisconsin
State
Crime
Stoppers,
Inc.
April 2011 Issue
In This Issue:
President’s Message………..1
Compliant with Tax
Filings……………………...2
A Few Simple Ways...To Keep
Your Crime Stoppers
Program Out of Trouble….3
Funneling of Informants
Threatens Program……….4
Reasons to Not Give Crime
Stoppers Funds Away……5
List of Board Members……..6
Visit our website:
www.wicrimestoppers.org
Send Articles to:
Lt. David Livingston
Sparta Police Department
121 E Oak ST
Sparta, WI 54656
Fax: 608-269-2156
President’s Message
By: K. Scott Abrams, CPA, FHFMA
Welcome to the 20th Wisconsin State Crime Stoppers Annual Meeting and Training
Conference! As we all reflect upon the last 20 years of our organization's existence
serving local Crime Stoppers Programs throughout the State of Wisconsin, you may be
doing the same thing as you evaluate the tenure of your local Crime Stoppers
Program as well. In some discussions I have had with one of my Canadian Crime
Stoppers counterparts, he was asked the question, Is Crime Stoppers still viable? In
fact, he made this as his chairperson’s message on the Canadian Crime Stoppers
Association newsletter. It gave me a moment of pause to consider the question myself.
Certainly there have been many changes throughout our localities, our country and the
world over the last 20 years. However, the basic premise of Crime Stoppers, an
anonymous tip program offering rewards for information, is still extremely beneficial,
effective and certainly viable. As I look at the Crime Stoppers USA website and
noticed that almost 900,000 cases have been solved and over $4 billion in property
and drugs recovered since inception, certainly lends credence that the Crime Stoppers
concept is viable and working.
Obviously, we have had to change some of our methodologies to keep up with the
times. As we look at the explosion of the use of electronic technology… the Internet,
Facebook, cell phone text messaging, just to mention a few… we have modernized
Crime Stoppers to keep up with the ever-changing means of communication. When is
the last time you saw a teenager or a young adult actually make a phone call? Some
of us may consider that more impersonal, but we need to utilize all of the resources
available to us to make sure that we get the information to resolve outstanding crimes
and make our communities safer.
Why does it work? I think Crime Stoppers works in part because it is a communitybased organization that understands and associates well with the members of its
community. But the underlying factor is that the law enforcement, community and
media work together to solve and prevent crime. Building on this strong partnership
will continue to provide dividends for the community for many years to come. I think
you'll agree that the Crime Stoppers concept is just as viable and usable today as it
was over 20 years ago, we just have to change our way of thinking on how we obtain
our information.
I hope you enjoy the Wisconsin State Crime Stoppers Conference. It is a time to renew
old acquaintances and reminisce, but it is also a time to meet new friends and build
new relationships. We hope that you find the conference not only provides good
content to take back to your local Crime Stoppers program, but also allows you to
build a network of Crime Stopper colleagues that you can call on from time to time to
test new ideas or share some of your successes. When it comes down to it, this is
YOUR conference.
Email: dlivingston@spartapd.com
Crime Doesn’t Pay. . .
Solving It Does
We Want Your
Information,
Not Your Name!
IN PURSUIT
PAGE 2
WISCONSIN STATE CRIME STOPPERS, INC.
Is Your Organization Compliant With Tax Filings?
By: K. Scott Abrams, CPA, FHFMA
The Internal Revenue Service has implemented some significant changes in the tax exempt reporting process. Since one of
the requirements of being a Crime Stoppers program is being a 501(c)(3) tax exempt organization, as recognized by the
Internal Revenue Service, it is important to understand these changes so that your organization is compliant with the
updated tax regulations. Beginning in 2009, the Internal Revenue Service implemented a three-year transition for tax
exempt organizations required to file annual returns. Remember, as a tax exempt organization, it must allow for viewing
or provide a copy of its tax returns to anyone from the public, media or others requesting to see that organization’s tax
exempt application and recent tax returns…it is the law!
In the past, small local Crime Stoppers programs may not have been required to file any reports with the Internal
Revenue Service. However, beginning with tax years ending in calendar 2008 with filings performed in 2009, all tax
exempt organizations were required to report and file an annual tax return. The biggest change is for the smaller
organizations, which are classified by the Internal Revenue service as having gross receipts of equal to or less than
$25,000. These organizations are required to file what is called a Form 990-N. This form is to be completed
electronically and is known as an ‘E-Postcard’. In order to make an initial filing with Form 990-N, you'll first need to
register your organization on the Internal Revenue Service website, which will then allow you to create the Form 990-N.
As a quick reference, you can find these instructions at: http://epostcard.form990.org/. However, should your
organization so desire, it may file Form 990 or 990-EZ, which provides additional financial and organizational
information to anyone wishing to review the filed tax form.
For some medium and larger size Crime Stopper organizations, based on the IRS three-year transition filing requirement,
the form your organization may need to file may change depending on your financial activity and annual gross receipts.
The table below outlines this three-year transition for tax exempt organizations and the requirements of which form to file
respectively for those years. In addition, some noticeable changes and modifications have been made to the Form 990
and Form 990-EZ forms and schedules and in many instances have been expanded. It is important to understand the new
requirements in filling out and submitting appropriate information.
2009 Tax Year
(Filed in 2010 or 2011)
Form to
File
Gross receipts normally ≤ $25,000
990-N
Gross receipts > $25,000 and < $500,000, and
Total assets < $1.25 million
990-EZ
or 990
Gross receipts ≥ $500,000, or
Total assets ≥ $1.25 million
990
2010 Tax Year and later
(Filed in 2011 and later)
Form to
File
Gross receipts normally ≤$50,000
990-N
Gross receipts > $50,000 and < $200,000, and
Total assets < $500,000
990-EZ
or 990
Gross receipts ≥ $200,000, or
Total assets ≥ $500,000
990
It is important for each Crime Stoppers organization to review its responsibility in completing and meeting any and all tax reporting
requirements. If necessary, your organization might want to enlist the help of a local accounting firm to assist with any clarification of
your organization’s responsibilities. Also, you can find additional information about the filing and reporting requirements at the
Internal Revenue Service website located at: www.irs.gov/charities.
PAGE 3
IN PURSUIT
www.wicrimestoppers.org
A Few Simple Ways...To Keep Your Crime Stoppers Program Out of Trouble
By: Judge Richard Carter (Ret.); Director of Legal Services of Crime Stoppers USA
Corporate Filings:
· Timely file reports and updates to the State agency overseeing nonprofit corporations
· Timely file tax returns and pay any taxes due
· Periodically verify that the Corporation is in "good standing"
Comply with the Bylaws:
· Proper notice of meetings
· No meetings without a quorum
· Conduct elections/appointments per Bylaws
· Record and maintain appropriate Minutes
· Periodically review bylaws, and amend as needed per procedures in Bylaws
Do Not Put 501(c)3 Tax Exemption At Risk:
· Do Not Share Tax Exemption with other persons or entities
· Have "conflict of interest statement" for each member of the board of directors
· Avoid self-dealing and even the appearance of such, i.e. the Corporation should not do business with its officers
and directors
Fundraising:
· Fundraising is a continuing responsibility of the board of directors
· All fundraising initiatives must comply with all applicable laws
· Without sufficient funding, Crime Stoppers cannot pay its legal obligations
· Inability to pay rewards = "Game Over"
Expenditures:
· Must be approved by favorable vote pursuant to Bylaws
· Must be lawful and within scope of charitable purposes of the organization
· Must respect "donor intent", i.e. funds raised must be spent in accordance with the intent of donor
Avoid Large or Supplemental Rewards:
· Drives up the cost of doing business
· Reflects discrimination and disrespect
· Jeopardizes case solution and prosecution
· Can hurt fund-raising efforts by giving perception of wasting money or having plenty of funds
· Laundering non-governmental and non-500(c)3 funds through Crime Stoppers is a criminal offense
Protect Informants:
· Practice safe tip-taking and records management
· Move to quash subpoenas and motions to compel production of Crime Stoppers records
· Ask that a case be dismissed rather than allow an informants identity to be involuntarily disclosed
No Crimes or Scandals:
· Require two (2) signatures on checks
· Conduct financial reviews and obtain independent audits at least every two years
· Control damage with news release to keep the public's confidence and trust
· Ask for pre-trial resignations of board members who are arrested and charged
· No perjury or illegal destruction of evidence
Reprinted with permission from Judge Richard Carter
IN PURSUIT
PAGE 4
WISCONSIN STATE CRIME STOPPERS, INC.
Funneling of Informants Threatens Program
By: Greg MacAleese, Founder Crime Stoppers
At no time in its history has Crime Stoppers been more successful.
We are witnessing the rapid international expansion of the program. In the United States, cases are being solved
through Crime Stoppers tips at a record rate. And we have been flattered by imitators, such as "America's Most Wanted"
television show.
Yet, I don't think we should sit back and smugly think that everything is perfect with the program. Recently, several
programs have experienced a problem that could threaten the basic foundation of Crime Stoppers – both legally and
ethically.
This problem is the "funneling" of informants into the Crime Stoppers program. "Funneled" informants are those whose
identities are known to law enforcement personnel and who have not directly contacted Crime Stoppers. In this situation,
the coordinator will be approached directly by other officers about giving one of their informants a Crime Stoppers code
number. Often this is done under the pretext that the informant will not cooperate with investigators without getting some
money and a pledge that confidentiality will be maintained. This places the coordinator in an extremely difficult position.
Should they cooperate? The truth is that if the coordinator provides the code number, the integrity of the Crime Stoppers
program has been breached. This is especially true if the coordinator then presents the case to the Board of Directors
without advising them that this is a "funneled" informant. The board's authority to judge the case on its actual merits is
usurped. On the other hand, if the coordinator does not cooperate, this sometimes creates hard feelings between them
and the investigator.
Occasionally, the coordinator is not given a choice. The investigator will instruct the informant to just call Crime Stoppers
with the information, get a code number and not let on that they are already working with the investigator. The
coordinator and the Board of Directors never know that they are being "conned" by both the informant and another
member of their law enforcement agencies.
The implications of what I have described here are pretty obvious. In an extremely important court test of Crime
Stoppers, Brown vs. Illinois, the program was described by a defense attorney as being a "sham" organization that was
really a front for law enforcement. Thus, there would be no corporate protection of Crime Stoppers records and they
would be subject to the Open Records Act.
Obviously, the coordinator needs some protection in these instances. The best way to ensure this protection is the creation
of an internal policy within the police department, which strictly curtails the use of "funneled" informants. The Board of
Directors should be consulted by the law enforcement leaders before such a policy is developed.
Of course, there is a broader issue at stake in such a situation. That issue is: "Who is in charge of Crime Stoppers?" Is it the
Board of Directors, or is it the law enforcement agency?
In reality it is both. Crime Stoppers was originally designed to be a cooperative effort among law enforcement, the
community and the media. Law enforcement was charged with the responsibility of handling the operational part of the
program. The community, through the Board of Directors, was supposed to raise the reward fund and create policy for
the operation of the program. And the media was responsible for publicity. Unfortunately, a few programs have drifted
from this original design. The Board of Directors has failed to provide proper oversight; and law enforcement, without
any policy to follow, has been left with "flying by the seats of their pants" in the day-to-day operation of the program.
Clearly, in these circumstances, abuses are invited. Fortunately, these are extremely rare circumstances and have not
caused any serious public relations or legal problems. However, right from the beginning, I have said that Crime Stoppers
is a fragile concept that is only as good as our weakest program. A program that is improperly managed puts all of us at
risk. As they say, "Bad arrests make bad laws." Well, so do Crime Stoppers programs that operate outside the proper
guidelines.
Reprinted with permission from Judge Richard Carter from the May, 1988, The Caller.
Crime Stoppers Conference
Sponsored By:
PAGE 5
IN PURSUIT
www.wicrimestoppers.org
Reasons to Not Give Crime Stoppers Funds Away
By: Judge Richard Carter (Ret.); Director of Legal Services of Crime Stoppers USA
While it may be ostensibly "legal", if the Bylaws and Charter of the corporation allow for such donations or expenditures, it is
definitely NOT within the purposes or intent of Crime Stoppers when Greg MacAleese created "Crime Stoppers" for funds to be spent
on anything other than the payment of rewards and the administrative costs of operating the anonymous cash reward program. Crime
Stoppers was never intended to be a "foundation", grant agency, or the like.
Expenditures on law enforcement equipment, while it may be well-intended, is not appropriate. The primary problem with such
expenditures, among others, are:
1. If the funds were donated to Crime Stoppers by donors who believed the gift was going to be used to pay Crime Stoppers
rewards or support the operations costs, then such re-gifting to law enforcement agencies and others is a fundamental violation of
"donor intent". Such disrespect is frowned upon, and in some cases has resulted in claims and litigation by donors. If the donor had
wanted to give money to the law enforcement agency, they would have done so. They gave the money to Crime Stoppers. In some
jurisdictions, this can even rise to a criminal law violation for deceptive advertising and trade practices.
2. If people think that Crime Stoppers has so much money that it is giving it away, would-be donors will not give to Crime Stoppers.
3. Such a mindset can cause a Crime Stoppers organization to actually believe that they are operating at 100% and that there is
nothing better that they could do with their excess funds. In 99% of the cases, there is MUCH more that the Crime Stoppers
organization could do to improve their program and its success.
4. Giving back to the government will often create a dependency that costs the law enforcement department in the future when
funding is cut because of the expectation that the Crime Stoppers gifts will continue.
5. Other charities who hear about the Crime Stoppers money giveaway will make requests to Crime Stoppers for their worthwhile
causes. There is simply not enough money to share with them all, but the one's you turn down will come away with negative feelings
towards Crime Stoppers.
6. Additionally, the precious time of your volunteers who serve on the Crime Stoppers board of directors may find that the length of
the meetings increases due to the reading and discussion and voting upon requests for Crime Stoppers dollars (or Crime Stoppers
board business does not get taken care of due to the time running out).
Reprinted with permission from Judge Richard Carter
www.crimestoppersusa.com
INTERNATIONAL
www.CSIWorld.org
IN PURSUIT
PAGE 6
WISCONSIN STATE CRIME STOPPERS, INC.
WISCONSIN STATE CRIME STOPPERS BOARD OF DIRECTORS
President
K. Scott Abrams, CPA FHFMA (Civ), '11
Racine County Crime Stoppers
deepblue01@aol.com
Committees: Executive, Bylaws, Newsletter
Secretary
Rodney Wilson (LE) '11
Madison Area Crime Stoppers
608-267-1984
RWilson@cityofmadison.com
Committees: Executive
Board Member
Beverly Ghiloni (LE) '12
Wood County Crime Stoppers
715-421-8709
bghiloni@co.wood.wi.us
Committees: Nominating Finance, PR State
Conference
Board Member
Dave Livingston (LE) '12
Monroe County Crime Stoppers
DLivingston@spartapd.com
Committees: Newsletter
Board Member
Lloyd Brueggeman (Civ) '12
Janesville Area Crime Stoppers
bruege@att.net
Committees: Membership, Finance, PR
Board Member
Dave Byrnes (Civ) '12
Green Bay Area Crime Stoppers
920-606-3506
burnz@tds.net
Committees:
Wisconsin
State
Crime
Stoppers,
Inc.
Vice President
Diane Lotter (LE) '12
Marathon County Crime Stoppers
715-261-1212
Diane.Lotter@co.marathon.wi.us
Committees: Executive, PR, LE Conference
Treasurer
Bob Berndt (LE) '11
La Crosse Area Crime Stoppers
608-789-7240
berndtr@cityoflacrosse.org
Committees: Membership, State Conference, PR, LE
Conference
Board Member
Chad Sullivan (LE) '11
Janesville Area Crime Stoppers
608-755-3134
SullivanC@ci.janesville.wi.us
Committees: Nominating
Board Member
Jeffrey West (Civ) '12
Lincoln County Crime Stoppers
jfwest@verizon.net
Committees: By-Laws, Membership, Nominating
Board Member
Jenn Jennings (Civ.) '11
Winnebago Countywide Crime Stoppers
JJennings@new.rr.com
Committees: Website, Nominating
Board Member
Your name could be HERE!!!
Wisconsin State Crime Stoppers
P.O. Box 964
Madison, WI 53701-0964